As an internal guideline, the Exchange has been mindful of ensuring that such activities undertaken by a listing applicant or listed issuer are not contrary to public policy. In view of the amendments to the Gambling Ordinance, which came into effect on 31 May 2002, the Exchange has updated its guideline. It would not be contrary to public interest if a listing applicant or listed issuer is involved in the operation of a gambling activity that is not unlawful under the Gambling Ordinance. Such gambling activity has the following features:
- the gambling activity takes place outside Hong Kong; and
- the bookmaking transactions and the parties to the transactions are outside Hong Kong
In addition, the gambling activity should not violate any applicable laws in the areas where such activity operates.
The Exchange also notes that other major exchanges permit the listing of companies involved in the gambling business, and acquisitions of or investments in gambling business by listed issuers.
Additional relevant disclosure, however, would be required in the prospectus, announcement or circular concerned if a listing applicant or listed issuer is involved in the operation of a gambling activity that is not unlawful under the Gambling Ordinance. The Exchange would determine, based on the specific circumstances of the case, the extent of disclosure required with a view to ensuring transparency of the operation of the specific gambling activity and the associated risks. Such disclosure would include the type(s) of gambling activities involved, the applicable regulatory or licensing requirements and the specific risks in relation to operation of such activities. For listed issuers acquiring or investing in the gambling business, such additional relevant disclosure would be required on top of the disclosure required by Chapter 14 or Paragraph 2 of the Listing Agreement (in respect of the Main Board Listing Rules) or Chapters 19 and/or 20 or Rule 17.10 (in respect of the GEM Listing Rules). The extent of additional relevant disclosure would depend on the materiality of the transaction to the issuer concerned.
